Why aren't advisors building multigenerational practices?
Little says that what he’s looking for in an immediate successor is who can bring in a sizeable book of their own and shares his client-centric investment philosophy. He says that his priority, and the priority for his successors, should be in facilitating a lifestyle for their clients, not in building a lifestyle for themselves.
As for a young gun, Little say’s he’s got one in his license assistant Arpit Grover, who joined the practice at age 27 after completing an MBA in India. Grover proved his value to Little by working diligently, demonstrating loyalty, and growing his skillset, especially in client relationships and product innovation.
Crowe says that a quick understanding of novel products, as well as an ability to connect with younger clients, and older clients’ children and grandchildren, are some of the key skills a young advisor brings to their practice. She says that older advisors, who established themselves with an older product set, can miss the opportunities presented by new products. In establishing her own practice, Crowe focused on new product development. She says that in an era of new funds and liquid alts, young advisors can demonstrate value by keeping their practices ahead of the curve.
On the other side of that coin is a tendency, Crowe says, among some young advisors focus too much on what’s new and ignore the tried and true. She says that’s where older advisors show their value best, demonstrating the experience that can only come from living through several market cycles to make sure the fundamentals of the practice are solid. It’s Crowe’s view that the strengths and weaknesses of each generation balance each other out.
“From where I stand, I would say that we are not making use of [multigenerational teams] enough,” Crowe says. “I've started speaking to an advisor a generation or two ahead of me. The first thing that we realized was that we appeal to different clients, that there's great strengths in terms of what they bring to the table with their experience and, and great strengths that I bring in terms of product development that they hadn't necessarily looked at. I think it is really important that we start to address this gap because it can ensure that clients are continuing to get the best service.”